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Environmental Policy And Labour Market Imperfection

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  • Kuo†Hsing Kuo
  • Cheng†Te Lee
  • Shang†Fen Wu

Abstract

This paper will set up a general equilibrium model with a distorted labour market to explore the effects of an environmental tax and union bargaining power on formal employment and the informal competitive wage. We find that when the government raises the environmental tax, both formal employment and informal competitive wage would fall. In addition, we confirm that a policy of labour market reform would increase both formal employment and the informal competitive wage.

Suggested Citation

  • Kuo†Hsing Kuo & Cheng†Te Lee & Shang†Fen Wu, 2018. "Environmental Policy And Labour Market Imperfection," Bulletin of Economic Research, Wiley Blackwell, vol. 70(2), pages 175-184, April.
    • Handle: RePEc:bla:buecrs:v:70:y:2018:i:2:p:175-184
    DOI: 10.1111/boer.12122
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